colorado mortgage guy

Consumers Point to Stronger Housing:

November 15, 2010

Consumers drive the housing market.  So when we see improvement in consumer behavior, it paints a prettier picture for housing.

Retail Sales rose more than expected in October to post their largest gain in seven months.  The Commerce Department reported that total Retail Sales increased 1.2% which is the biggest increase since March.  They also upwardly revised last month’s data.

This report follows the much better than expected Consumer Sentiment report published by Reuters/University of Michigan. They reported that their preliminary consumer sentiment index jumped to a reading of 69.3 in November compared to 67.7 the month prior, putting in on track to be the best results since June. The release beat out analysts´expectations of 69.0.
Both of these reports show that consumers are back on track and coupled with very low mortgage rates could lead to more demand in housing.

What Happened to Rates Last Week:
colorado mortgage rates 
Mortgage backed securities (MBS) lost -147 basis points last week causing 30 year fixed rates to increase from the previous week.  The sell-off in mortgage backed securities started with much weaker than anticipated demand for the U.S. 10 year and 30 year Treasury auction.  We had our second straight week of positive economic data with stronger than expected Initial Jobless Claims, Consumer Sentiment and Wholesale Inventories which also pressured MBS pricing.

What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week.  They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.  I will be watching these reports closely for you and let you know if there are any big surprises:

denver mortgage rates

It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.

mortgage broker denver

Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com

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